Strategies to move to customer-centric productisation and pricing Asian Banker Conference, 6th April 2011 K. Nanda Kumar CEO, SunTec

Strategies to move to customer-centric productisation and pricing

Asian Banker Conference, 6th April 2011

K. Nanda KumarCEO, SunTec

SunTec confidential | www.suntecgroup.com2 SunTec confidential | www.suntecgroup.com2

Why Customer Centricity?Market

saturation

Changing customer

needs

Non-traditional competition

(Telcos, retailers..)

Competition from global

players

Opportunities in rural and

SME segments

International expansion

Need for Customer centric strategies

SunTec confidential | www.suntecgroup.com3

Build Trust; Own Customers!

Track andretain

Valuablecustomer

KnowYour

customers

Steps to build trust and own customers

Customer Trust &

Ownership

Deliver right customer

experienceProvide right

Product and price

1 23

4


1. Know your Customers

Customer Management

• Hierarchy

• Profile

• Transactions

• Products

• Accounts

• Regions

• Channels

360 degree View

Segmentation

• Behavioral

• Value based

• Demographic

• Others

Customer Intelligence

Degree of understanding customers

• Predictive modeling

• Intelligent offerings


2. Offer right products and price plansCustomer

needs/Lifecycle value

Business objectives

Competitor plans

Future needs of customer

Modeling of best value price

plans

Modeling of best value product

packages

Personalized and differential pricing

Segment focused bundles/packages


3. Deliver compelling customer experience

Relationship Value matrix

Total Transaction Volume Profitable Behavior Financial Milestones

Long-term Customer Value Loyalty to the bank Future Affiliated Potential

Segments based on Relationship Value

Customer Relationship Value (RV)

Superior Experience

leads to trust

Unique segment focused customer benefits


Constantly track and retain valuable customers

4.Track and retain valuable customers

Relationship value/customer profitability measure

Transform medium-value customers

Deter low- value customers

Customer benefits (Financial/Non-Financial)

Invite profitable customers

Reward high- value customers

Customer value/experience analysis

Need a technology platform to constantly monitor customer value

`


Track andretain

Valuablecustomer

KnowYour

customers

Deliver right customer

experienceProvide right

Product and price

1 2 34

Technology to enable customer centricity

360 degree view

Micro Segmentation

360 degree view

Behavior modeling

Customer centric pricing

Risk/SLA based price variations

Customer focused bundled offerings

Lifecycle value based benefits

Multi channel driven personalized experience

Relationship focused price plans

Customer value analysis

Business profitability analysis

Revenue impact analysis

Technology Platform enabling Customer Centricity


Customer centricity: Impact on top line/ bottom line

• Increased sales volumes

• Retention of high value customers

• Improved up-selling and cross selling

Surge in revenues……“Segment focused product offerings in an Indian bank enabled 74% growth in fee

income”

• Prompt encouragement of profitable businesses

• Control over operational margins and costs

• Right pricing for right customers

• Product and customer level profitability

Assured profits…..

“A leading Indian private bank plugged $447

thousand a year, through centralized pricing and billing implementation “


SunTec – Pioneering Relationship-based Pricing in financial services

industry since 2000


Q&A

[email protected]

Clients across Communications, Media & Entertainment, Port Operations, Leasing and Fleet Management.

HFCL MTNL

All ‘early adopters’ and innovators in the Banking, Financial Services & Insurance

space as clients.

Documents

Strategies to move to customer-centric productisation and pricing Asian Banker Conference, 6th April 2011 K. Nanda Kumar CEO, SunTec